the workforce 2020- understanding tomorrow’s workforce
DESCRIPTION
SAP Senior Director of Diversity Nicole McCabe discussed the rapidly changing global workforce during her presentation at the 2014 Human Capital Leadership Forum in New York on Oct. 21. In her presentation, McCabe discussed the results of a recent study of 2,400 executives and 2,700 employees about the current workforce. According to McCabe, the study showed the global workforce is becoming more flexible and diverse. In addition, McCabe pointed out feedback is crucial for today’s executives and employees, and the ” millennial generation” is changing the way many organizations look at the global workforce. However, McCabe pointed out millennials are still concerned about retirement, training and other traditional benefits when they evaluate potential employers: “The millennials really aren’t as different as we think … Many of them still look at compensation as the most important factor for choosing a role and staying with the job. They’re also concerned about things like retirement and training and development, but we were a little surprised to find that having meaning and having purpose were not a priority in staying at the same position.” McCabe noted learning and growing within an organization is important to millennials. She also pointed out compensation is the most important consideration for millennials, and today’s employers may need to rethink their compensation strategies to ensure they can find the most qualified candidates to fill vacancies: “You see these gaps where the employees are focusing on compensation, yet not a lot of companies are offering great compensation plans. We also see things about retirement plans for employees; they want those things but employers are not often offering those to the employees. I think that we need to look at this and as employers ourselves today it’s time to look at our compensation strategy.” - See more at: http://www.argylejournal.com/chief-human-resources-officer/2014-human-capital-leadership-forum-nicole-mccabe-senior-director-of-diversity-sap/#sthash.vKSfOEDh.dpufTRANSCRIPT
1© 2014 SAP AG or an SAP affiliate company. All rights reserved. 1
http://youtu.be/65zSO0iLHAo
The Workforce 2020Understanding Tomorrow’s Workforce
Nicole McCabe
Senior Director, Global Diversity & Inclusion
Global 27-country twin surveys5,400 People; 2,700 executives and 2,700 employees
conducted by Oxford Economics
Oxford Economics, The 2020 Workforce, 2014
SuccessFactors An SAP Company
Five research finding themes
The new face of work
A Millennial misunderstanding
What matters most
The leadership cliff
The learning mandate
1
2
3
4
5
SuccessFactors An SAP Company
The new face of work
83%
Executives say they are
increasingly using contingent,
intermittent, or consultant
employees, which will require
them to:
Change compensation plans
Conduct more training
Invest more in HR technology
The 2020 workforce will be increasingly flexible
SuccessFactors An SAP Company
The 2020 workforce will be increasingly diverse
SuccessFactors An SAP Company
32%
39%
40%
41%
41%
42%
43%
48%
51%
51%Globalization of labor supply
Millennials entering the workforce
Difficulty recruiting employees with base-level skills
Increasing number of intermittent/seasonal employees
Increasing number of contingent employees*
Employee expectations are changing
Aging workforce
Changing work models(e.g., telecommuting, flex time)
Increasing number of consultant employees
Difficulty recruiting specialized employees
Labor shifts executives are most concerned about
Have ample data to
understand strengths
and potential
vulnerabilities
Use quantifiable metrics
and benchmarking as
part of workforce
development strategy
39% 38%
Know how to extract
meaningful insights
from the data
available to them
42%
A lack of metrics and tools holds HR back
SuccessFactors An SAP Company
A millennial misunderstanding
SuccessFactors An SAP Company
Millennials are not as different as we think
Almost everyone
wants training and
development
Compensation
is the most
important factorEven
retirement
plans are only
slightly more
important to
non-Millennials
Their top
priorities
are the same
as non-
Millennials
SuccessFactors An SAP Company
Millennials care more about making a positive difference in the world
Importance to job satisfactionMyth or truth?
21% 20%
Millennials
29% 31%
Millennials
32% 10%
Income
Learning & growing is more important to Millennials than meeting income goals
Achieving work/life balance is more important to Millennials
Non
Non
Learning
01
03
02
SuccessFactors An SAP Company
What matters most at work
SuccessFactors An SAP Company
When it comes to satisfied employees,–
a lot
0% 10% 20% 30% 40% 50% 60% 70%
Education
Flexible schedule
Benefit plans
Vacation time
Flexible work location
Supplemental training
Retirement plans
Bonuses/merit pay
Competitive compensation
Employees who want
Employers who offer
SuccessFactors An SAP Company
compensation matters
Executives value loyalty more than job performance
1. High level of education
2. Loyalty & long-term commitment
3. Ability to learn
4. Diverse background
5. Interest in the wider business
6. Self-directed learner
7. Willingness to let others lead
8. Substantial field experience
9. Leadership ability
10. Job performance & results
What executives
value as top
employee attributes
1
2
3
4
5
6
7
8
9
10
What employees
think employers
want
4
2
1
6
7
8
9
10
8
3
SuccessFactors An SAP Company
Men and women have slightly different
priorities for job satisfaction and benefits
Men Women
…would prefer to use more current
technology on the job
…am interested in quality of
life over career path
…expect more feedback on my
performance than I currently receive
53%47%
47%51%
34%28%
SuccessFactors An SAP Company
The leadership cliff
SuccessFactors An SAP Company
Gaps in leadership capabilities
spell trouble for future growth
Have the skills to
manage talentExecutives cite a lack of
adequate leadership as
the number two
impediment to
building a workforce to
meet future business
objectives.
52%
Are prepared to lead
a global workforce
Know how to
inspire employees
Can lead a
diverse workforce
Are able to
drive change
51%
47%
44%
34%
SuccessFactors An SAP Company
Most companies are not cultivating leadership
within their organizations
40%
Employees
who say it is
easy for them
to collaborate
37%
Employees
who agree
their company
is committed to
diversity
19% 31%
Executives
who picked
leadership as
a top 3
attribute
Employees
who expect
more feedback
than they get
now
SuccessFactors An SAP Company
The development mandate
SuccessFactors An SAP Company
Organizations struggle to develop a learning culture
51%
Has a culture of continuous
learning
47%Is capable of retaining and sharing
institutional knowledge
52%
47%
41%
52%
43%
45%
Has a formal mentoring program
Offers incentives for pursuing
further education
Employees
say their company…Executives
say their company…
SuccessFactors An SAP Company
For employees, obsolescence
is a bigger concern than layoffs
18%
19%
19%
27%
31%
35%
40%Position changing or becoming obsolete
Not enough advancement opportunities
Inadequate staffing
Wage stagnation
Technology changes
Economic uncertainty
Layoffs
SuccessFactors An SAP Company
01
03
02
Development of employees
and leaders will become the
new employer differentiator
• Learning
• Succession planning
• Feedback
It may be time to rethink our
compensation strategies
HR should continue to push
toward boardroom strategy setting
We must prepare for a more
diverse, flexible, and contingent
workforce
Key Takeaways
04SuccessFactors An SAP Company
R U READY?
www.successfactors/workforce2020.com